Traders betting against the crypto market have lost more than $450 million in the past 24 hours as the leading cryptocurrency surged in one of its most impressive rallies in nearly a year.
According to CoinGlass data, small traders had to face About $457 million across major centralized exchanges in the past day. Crypto exchange OKEx took the lion’s share of these liquidations at over $241 million, followed by Binance at $116 million.
Apart from short traders, long traders were also caught off guard as over $108 million of long positions were liquidated. This brings the total value of liquidated positions over the past day to over $727 million, a level not seen since November 8 when the crisis hit crypto exchange FTX.
There was a huge amount of liquidations in the past 12 hours, with data from CoinGlass showing liquidated positions reaching $514 million.
Bitcoin-tracked futures experienced $23 million in both short and long liquidations over the past day, while futures tied to Ethereum saw more than $16.8 million in liquidations. Solana, DogeCoin, and Aptos-tracked futures also saw liquidations worth nearly $3 million.
The record level of liquidation came as the leading cryptocurrency broke above key resistance levels and extended its rallies. The world’s largest cryptocurrency, bitcoin, at one point in the past crossed the $21,000 price mark, while Ethereum hovered around $1,600. Both the coins have gained around 10% in the past days.
Meanwhile, there has also been a sharp increase in activity in the futures market for digital currencies. As reported by CryptoQuant’s Ki Young Joon, buyers entered the market on Saturday morning and bought around $4 billion worth of bitcoin futures.
Although a mix of factors may have influenced the recent crypto rally, the crypto market managed to catch up Inflation has shown signs of easing following new data released on Thursday by the US Labor Department.
As expected, the annual inflation rate fell to 6.5% in December, compared to 7.1% in November. Month-on-month, inflation declined by 0.1% compared to an increase of 0.1% in the previous month. Core CPI, which does not take into account volatile food and energy prices, fell to 5.7% from 6% in November.
Low inflation is generally seen as bullish for risk assets like crypto as it puts pressure on the US Federal Reserve to slow down interest rate hikes. Over the past year, the Fed and other central banks around the world have been aggressively raising interest rates, creating an unfavorable environment for crypto and other risk-on assets.
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